Residents of Philadelphia pay a flat city income tax of 3.93% on earned income, in addition to the Pennsylvania income tax and the Federal income tax.Nonresidents who work in Philadelphia pay a local income tax of 3.50%, which is 0.43% lower than the local income tax paid by residents. Business Income & Receipts Tax (BIRT) Due date. The new rates are. The city’s market value of taxable property per capita in 2015, for example, was 22 percent lower than the median of the comparison cities. Box 1393 Philadelphia, PA 19105-1393. Corporations will pay tax on net income computed at the following rates: $1.50 for each $1,000 or major fraction thereof up to $300,000 of capital employed in Louisiana, and $3 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana. The Philadelphia School Tax is a form of property tax that is used to fund the replacement of crumbling infrastructure, tougher standards, new technology, and the need to prepare students for an economy with decreasing blue-collar jobs. The FICA tax rate will remain the same at 6.2% for the employee portion to … If you’re interested in last year’s (2018) Philadelphia tax rates, due dates, and filing tips, go here. Tax rate. The initial corporation franchise tax is $110. You can file BIRT returns and make payments through the City’s eFile/ePay site. Dale S. Goldberg, CPA We're still working on this page's design and content. Is It Worth Hiring a CPA To Do Your Taxes? Dale S. Goldberg has more than 30 years of accounting experience and has built a loyal client base in Philadelphia PA. Dale’s firm is rooted in providing quality professional services delivered with personal attention and care. Philadelphia is widely seen as having high taxes, which some civic leaders and analysts view as detrimental to the city’s economic prospects. There are no extensions for tax payments, but you can apply for an extension to file your return. Public Law 86-272 continues to apply for the tax on Net Income. A lot of people find they don’t have the time or would prefer professional help when it comes to filing their 2019 Philadelphia taxes. There are no extensions for tax payments, but you can apply for more time to file your return if needed. 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For more information about BIRT, visit the business, income, and receipts page on the City of Philadelphia site. The Federal extension allows you up to six months from the original IRS due date to file your federal tax returns. Certain types of unearned income are exempt from School Income Tax: You must pay the tax due on time. If you have specific questions about how to apply this tax, contact the Department of Revenue. Every individual, partnership, association, limited liability company (LLC), and corporation engaged in a business, profession, or other activity for profit within the City of Philadelphia must ﬁle a Business Income & Receipts Tax (BIRT) return. Philadelphia CPA / Accountant 1.415 mills ($1.415 per $1,000) on gross receipts, and 6.25% on taxable net income. First Name * Last Name * Company * Email Address * Topics Of Interest COVID-19 - Crisis Response CPE Webinars View All Available Topics. It depends if you’re just filing, paying, or requesting a refund. The School Income Tax rate is 3.8712% of unearned income for 2019. The Philadelphia City Wage Tax is a tax on salaries, wages, commissions, and other compensation. Both corporate and individual income taxes are currently assessed at a tax rate of 4.63 percent. The state could see a drop to 5.5% in 2019, pending legislative approval. Residents of the city of “Brotherly Love” are used to paying a lot of taxes. There might be an opportunity to reduce the amount of tax you owe. Monday – Friday, 8:30 a.m. – 5:00 p.m. Mail All Payments With a Payment Coupon To Philadelphia Department of Revenue P.O. Tax credits that can be applied against the BIRT include: Visit the Tax Credits section of this site to find specific eligibility and filing requirements. City of Philadelphia Department of Revenue announces Wage Tax rate reduction starting July 1, 2019. If you don’t ﬁle a return, you will receive a non-ﬁler notice and court costs could be imposed. 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